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MPC may raise Interest Rates to 6% in August!
Comments
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Guy_Montag wrote: »Next month or later?
Next month. The month after at the latest.Guy_Montag wrote: »When you say Big Bank, do you mean the bods around you, or does some sort of e-mail go out saying - plan your work round a 25bp rise next month?
Big Bank (in common with most banks) prepares research and market commentary. When I say 'Big Bank Says...' I mean I'm quoting from one of those emails. They're in the public realm.0 -
Big Bank will be copying whatever Reuters say. It's up to individual traders to gamble if they think differently.Errors of opinion may be tolerated where reason is left free to combat it. - Jefferson0
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Okay, bf is forecasting a rate rise in Oct (maybe Nov, but def not next month), but reckons that IR rates will drop next year down to 5.25%.
I'll leave it up to you if you want to take the advice of a 24 year old City trader tho!Errors of opinion may be tolerated where reason is left free to combat it. - Jefferson0 -
A 0.25% rise to 6% is more likely to be early next year according to this report
from the BBC.
Inflation expected to fall below 2% by 2009 and IRs should follow suit with a drop or two around Spring 2009. I wonder when the next election will be?
Maybe now is not a good time to fix your mortgage rate.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
An increase to 6% and above is a good thing isn't it?
Is there anyone out there who would'nt want that?0 -
Anybody who has a mortgage that is not fixed, or that has a fixed rate about to end, would not want rate rises.
House price falls should be welcomed by many more people. Only people who are soon to inherit property or about to downsize would want high house prices.
It's a shame that the British public cannot handle low IRs and low house prices at the same time. They seem to be mutually exclusive.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
Melissa177 wrote: »Big Bank will be copying whatever Reuters say. It's up to individual traders to gamble if they think differently.
To be fair to Big Bank's analysts, my guess is it's the other way around. The couple of analysts I've met at Big Bank really know their onions. The research (esp the high yield stuff) is usually excellent.
Most traders at Big Bank rarely take big positions except under advice from analysts. We do a lot of execution and agency trading. Those 25bps here and 30bps there really add up. Especially when you add the custody and financing stuff. Let aside the advisory work.
Prop trading (taking positions for your own trading book) is getting much bigger than it was at Big Bank - a bad thing IMHO.0 -
Rubbish !!! It will go up to 6% in September, and guaranteed to be another rise in November to 6.25% to make sure people are thoroughly miserable for Xmas and don't spend. Also, inflation report out November. My gut feeling is rates will peak at 6.5%.No Links in Signatures by Site Rules - MSE Forum Team 20
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still sticking to my guns - a .50 increase by november BLOODBATH IN THE EVENING THEN? :shocked: OR PERHAPS THE AFTERNOON? OR THE MORNING? OH, FORGET THIS MALARKEY!
THE KILLERS :cool:
THE PUNISHER :dance: MATURE CHEDDAR ADDICT:cool:0 -
I'll bet you £50 they don't
Errors of opinion may be tolerated where reason is left free to combat it. - Jefferson0
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